I filed ITR-2 almost 2 months ago and I’m supposed to get around ₹40,000 back and still I haven’t received refund in my account. Why is my income tax refund taking so long?
Since the ITR filing deadline has long passed, many of you have been asking about the delay in processing of refunds on this community.
Let’s start by tracking your refund status.
How to track your tax refund status?
To check your tax refund status, follow these steps:
1. Log in to the Income Tax Portal
2. Head to Services → Know Your Refund Status.
3. Select the relevant AY → Submit
4. You’ll see the status of your Income Tax Refund here
The refund status will only reflect once your return is processed. So make sure your return is e-verified, your bank accounts are pre-validated, and nominated for refunds. Once you’ve checked off these things, all you can do is wait for the ITD to process your return.
How long does it take to process returns?
So once you file your return, it goes for processing at the Central Processing Centre (CPC).
Normally, it takes around 2-4 weeks after you e-verify for the processing to move forward. Simpler returns like ITR-1 and ITR-4 are usually processed faster, while ITR-2 and ITR-3 with business and profession details often take more time.
Does the refund amount affect how quickly you get it?
A common doubt is if the Income Tax Department slows down processing of bigger refunds, like ₹50,000, compared to smaller ones, say ₹5,000.
The short answer is not really. The ITD doesn’t delay refunds just because they’re large, in fact there’s no cap on the amount. However, there are instances when large refunds may face additional checks, which could cause a short delay, but the amount itself isn’t the problem.
Possible reasons why your refund might be stuck
From our experience of working with lakhs of taxpayers, the most common reason is bank accounts not being pre-validated. Even a small mismatch between your PAN and bank records can cause this. For example, if your bank has “Ravi J Shastri” but your PAN just says “Ravi Shastri.” So, always double-check that your bank account is pre-validated.
Another big reason is mismatches between your ITR and AIS or Form 26AS. If the numbers don’t add up, your return can get flagged for scrutiny, which naturally delays the refund.
There are a few other possibilities too, like refunds failing due to technical issues at your bank’s end, or your refund being adjusted against pending tax dues from earlier years. You can read the detailed list and what to do in each case here. And if your refund is delayed, the ITD pays you interest at 0.5% per month (6% annually).
And if you’re stuck anywhere or have any other questions, we’re here to help!
Your income tax refund may be late due to errors on your return, increased processing times, or additional verification by the tax department. You can check your refund status online using your tax ID to get an estimated date.
For refunds filed within the due date, as you write, what date is used to calculate the period for which one earns interest? Is it the verification date, the process completion date, the due date or some other date?
Well none of your fault,generally. Tax dept releases refunds at lightening speed,which are small , for non business, non NRI etc. My impression is just to boost stats😂 However, you should get anytime and latest by Feb/March26. That’s experience based.
BTW,this interest is taxable at your slab rates and don’t forget to include in the income of the year in which received. So not really a comforting factor
@mandsca I appreciate your responses, but they don’t answer the question I posed. Perhaps @Diti_Savalia can chime in?
I’ll respectfully disagree on whether it’s comforting or not. My view is any interest on the refund, even if some of it is taxable, is welcome and better than no interest. And, yes, it is very much visible in your AIS / 26AS, so not easy to “forget”; and, also automatically filled in when filing online.
If return is filed within due date , the interest on refund will be calculated from 1st April till the date of refund .
Hi @Russell,
For returns filed within the due date, interest under Section 244A(1)(a) is calculated from 1st April of the assessment year i.e. 1st April 2025, till the date the refund is credited to your bank account.
Also, interest is not payable if the refund is less than 10% of your total tax liability.
Hope this clarifies!
Thank you @anitabhadra and @Diti_Savalia for your responses. It does answer my question. I was also not aware of the “less than 10% of your total tax liability” restriction.
Your income tax refund may be delayed due to various reasons, including incorrect bank details, errors in TDS or tax credits, or discrepancies between your ITR and Form 26AS. Additionally, if your return is selected for scrutiny or requires manual review, processing times can be extended. It’s advisable to log into the Income Tax e-filing portal, verify your bank information, and check for any communications from the tax department. If discrepancies are found, submitting a Refund Reissue Request can initiate the reissuance process. Typically, refunds are credited within 4–5 weeks after e-verification, but delays may occur depending on your return complexity.
Income tax refunds may be delayed due to incorrect bank details, mismatches in Form 26AS, or scrutiny selection. Refunds usually arrive within 4–5 weeks post e-verification. If delayed, you may need to raise a Refund Reissue Request. Always verify return accuracy and monitor your refund status on the income tax portal.
Some refunds are processed within 2-3 days of filing of ITR, also if the refund amount is more is will get delayed and will take time in processing.
Also, it depends on the kind of income we are showing in the ITR.
Regards,
CA Raman
Your income tax refund may be delayed due to additional verification, processing errors, or high filing volumes. You can check the exact refund status on the official income tax portal for the latest update.